This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents.

Rules and Regulations Federal Register

12949 

Vol. 89, No. 35 

Wednesday, February 21, 2024 

1Public Law 110–234. 

2 73 FR 64868. 

3 7 U.S.C. 601–614. 

4Public Law 112–240. 

5Public Law 113–79. 

6Public Law 115–334. 

7Public Law 118–22. 

8 73 FR 64868. 

9 83 FR 26547. 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 1145 

RIN 0581–AE27 

[Doc. No. AMS–DA–23–0085] 

Reauthorization of Dairy Forward 

Pricing Program 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This final rule reauthorizes 

the Dairy Forward Pricing Program 

(DFPP) in accordance with the Further 

Continuing Appropriations and Other 

Extensions Act, 2024 (Extension Act), 

and makes two administrative changes 

to the provisions to include the 

California Federal milk marketing order 

in the list of eligible orders where use 

of a forward contract is applicable. 

Establishing new contracts under the 

DFPP was prohibited between the 

expiration of the program on September 

30, 2023, and passage of the Extension 

Act on November 16, 2023. The 

Extension Act reauthorizes the DFPP 

program to allow handlers to enter into 

new contracts until September 30, 2024. 

Any forward contract entered prior to 

the September 30, 2024, deadline must 

expire by September 30, 2027. 

DATES: This final rule is effective 

February 22, 2024. 

FOR FURTHER INFORMATION CONTACT: Erin 

Taylor, USDA/AMS/Dairy Programs, 

Order Formulation and Enforcement 

Branch, STOP 0231—Room 2530, 1400 

Independence Avenue SW, Washington, 

DC 20250–0231, Telephone: (202) 720– 

7183, Email: Erin.Taylor@usda.gov. 

SUPPLEMENTARY INFORMATION: The Food, 

Conservation, and Energy Act of 2008 

(2008 Farm Bill) 1 initially established 

the DFPP.2 The DFPP allows milk 

handlers, under the Agricultural 

Marketing Agreement Act of 1937, 

(AMAA) 3 to pay producers or 

cooperative associations of producers a 

negotiated price for producer milk, 

rather than the Federal order minimum 

blend price for non-fluid classes of milk 

(Classes II, III, and IV under the FMMO 

system). The DFPP does not allow for 

forward contracting of fluid or Class I 

milk. 

Following the initial expiration of the 

DFPP which prevented the 

establishment of new contracts after 

September 30, 2012, the ‘‘American 

Taxpayer Relief Act of 2012,’’ (ATRA) 4

revised the program to allow handlers to 

enter into new contracts until 

September 30, 2013. The ‘‘Agricultural 

Act of 2014’’ (2014 Farm Bill) 5 then 

extended the program to allow new 

contracts until September 30, 2018. The 

Agriculture Improvement Act of 2018 

(2018 Farm Bill) 6 reauthorized the 

program to allow handlers to enter into 

new contracts until September 30, 2023. 

The Extension Act 7 extends the 

program to allow handlers to enter into 

new contracts until September 30, 2024, 

subject to a September 30, 2027, 

expiration date. This final rule applies 

retroactively to November 16, 2023, in 

accordance with reauthorization of the 

DFPP in the Extension Act. 

Participation in the DFPP is voluntary 

for dairy farmers, dairy farmer 

cooperatives, and handlers. Handlers 

may not require producer participation 

in a forward pricing program as a 

condition for accepting milk. USDA, 

including Market Administrator 

personnel, does not determine the terms 

of forward contracts or enforce 

negotiated prices. This regulation also 

does not affect contractual arrangements 

between a cooperative association and 

its members. 

Under the DFPP, regulated handlers 

must still account to the FMMO pool for 

the classified use value of their milk. 

Regulated handlers claiming exemption 

from the Federal order minimum 

pricing provisions must submit to the 

Market Administrator a copy of each 

forward contract. The contract must 

contain a disclosure statement—either 

as part of the contract itself or as a 

supplement—to ensure producers 

understand the nature of the program as 

well as the basis on which they will be 

paid for their milk. Contracts that do not 

contain a disclosure statement are 

deemed invalid and returned to the 

handler. Signed contracts must be 

received by the Market Administrator 

before the first of a month, in order to 

be effective for the month. For example, 

contracts must be received by the 

Market Administrator by December 31, 

2023, in order to be effective for the 

month of January 2024. 

Handlers with forward contracts 

remain subject to all other milk 

marketing order provisions. Payments 

specified under a forward contract must 

be made on or before the same date as 

the federal order payments they replace. 

Required payment dates are specified in 

7 CFR 1145.2(e). 

This final rule reauthorizes producers 

and cooperative associations of 

producers to enter into forward price 

contracts under the DFPP through 

September 30, 2024. All terms of the 

new forward contracts must expire prior 

to September 30, 2027. All other 

provisions and requirements of the 

program as provided for in the final 

rule 8 published October 31, 2008, are 

still in effect. The California Federal 

milk marketing order was established 

ten years later, on November 1, 2018,9

which also followed two separate 

extensions of the DFPP. Thus, the 

California Federal milk marketing order 

has not been specifically included in the 

regulatory text of the DFPP as is every 

other Federal milk marketing order, and 

that is corrected here. 

Executive Orders 12866, 13563 and 

14094 

USDA is issuing this rule in 

conformance with Executive Orders 

12866, 13563, and 14094. Executive 

orders 12866 and 13563 direct agencies 

to assess all costs and benefits of 

available regulatory alternatives and, if 

regulation is necessary, to select 

regulatory approaches that maximize 

net benefits (including potential 

economic, environmental, public health, 

and safety effects; distributive impacts; 

and equity). Executive Order 13563 

emphasizes the importance of 

quantifying both costs and benefits, 

reducing costs, harmonizing rules, and 


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12950 Federal Register / Vol. 89, No. 35 / Wednesday, February 21, 2024 / Rules and Regulations 

promoting flexibility. Executive Order 

14094 reaffirms, supplements, and 

updates Executive Order 12866 and 

further directs agencies to solicit and 

consider input from a wide range of 

affected and interested parties through a 

variety of means. This rule has been 

determined to be not significant for 

purposes of Executive Order 12866 and, 

therefore, has not been reviewed by the 

Office of Management and Budget 

(OMB). 

Executive Order 12988 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. This rule has limited retroactive 

effect to November 16, 2023, in 

accordance with reauthorization of the 

DFPP in the Extension Act. This rule 

will not preempt any State or local laws, 

regulations, or policies unless they 

present an irreconcilable conflict with 

this rule. 

Executive Order 13175 

This proposed rule has been reviewed 

under Executive Order 13175— 

Consultation and Coordination with 

Indian Tribal Governments, which 

requires agencies to consider whether 

their rulemaking actions would have 

Tribal implications. AMS has 

determined that this proposed rule is 

unlikely to have substantial direct 

effects on one or more Indian Tribes, on 

the relationship between the Federal 

Government and Indian Tribes, or on 

the distribution of power and 

responsibilities between the Federal 

Government and Indian Tribes. 

Regulatory Flexibility Act and 

Paperwork Reduction Act 

In accordance with the Regulatory 

Flexibility Act (RFA) (5 U.S.C. 601 et 

seq.), the Agricultural Marketing Service 

has considered the economic impact of 

this action on small entities and has 

certified this proposed rule will not 

have a significant economic impact on 

a substantial number of small entities. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

businesses subject to such actions so 

that small businesses will not be unduly 

or disproportionately burdened. 

Marketing orders and amendments 

thereto are unique in that they are 

normally brought about through group 

action of essentially small entities for 

their own benefit. A small dairy farm as 

defined by the Small Business 

Administration (SBA) (13 CFR 121.201) 

is one that has an annual gross revenue 

of $3.75 million or less. The SBA’s 

definition of small agricultural service 

firms, which includes dairy processors, 

varies based on the type of dairy 

product manufactured. Small dairy 

processors are defined as having 

between 750 and 1,250 or fewer 

employees depending on the products 

made. 

According to the 2017 USDA National 

Agricultural Statistics Service (NASS) 

Census Report, the most recent report, 

there were 39,303 farms with milk sales. 

AMS estimates 36,158 farms, or 92 

percent, are considered small 

businesses. In 2018, 301 handler plants 

were regulated by or reported their milk 

receipts to be pooled and priced on a 

Federal milk marketing order. Of the 

total, approximately 163 handler plants, 

or 54 percent, were considered small 

businesses. 

Producers and handlers use the DFPP 

as a risk management tool. Under the 

DFPP, producers and handlers can 

‘‘lock-in’’ prices, thereby minimizing 

risks associated with price volatility that 

are particularly difficult for small 

businesses to mitigate. 

AMS is committed to complying with 

the E-Government Act, to promote the 

use of the internet and other 

information technologies to provide 

increased opportunities for citizen 

access to Government information and 

services, and for other purposes. 

Section 1601(c)(2)(B) of the 2014 

Farm Bill provides that the 

administration of the DFPP shall be 

made without regard to the Paperwork 

Reduction Act (PRA), 44 U.S.C. Chapter 

35. Section 1701 of the 2018 Farm Bill 

extended that Congressional direction 

through September 30, 2023, and that 

direction is further extended to 

September 30, 2024, by the current 

reauthorization of the DFPP, through the 

Extension Act. Thus, any information 

collection conducted for the DFPP is not 

subject to the PRA. 

Final Action 

In accordance with the Extension Act, 

this final rule extends the DFPP to all 

Federal milk marketing orders. New 

contracts under the Program may be 

entered into until September 30, 2024. 

Any forward contract entered into up to 

and until the September 30, 2024, 

deadline is subject to a September 30, 

2027, expiration date. 

Section 1601(c)(2)(A) of the 2014 

Farm Bill provides that the 

promulgation of the regulations to 

implement the reauthorization of the 

DFPP shall be made without regard to 

the notice and comment requirements of 

the Administrative Procedure Act, 5 

U.S.C. 553. Section 1701 of the 2018 

Farm Bill extended the Congressional 

direction, and Section 102 of the 

Extension Act extends that direction to 

the current reauthorization of the DFPP. 

AMS, therefore, is issuing this final rule 

without prior notice or public comment. 

The provisions of this final rule are 

retroactively effective to November 16, 

2023, when the Extension Act became 

law. As explained above, the DFPP is a 

voluntary program and AMS will not 

take action until forward contracts are 

received from handlers who choose to 

participate in this program. By making 

this rule effective retroactive to 

November 16, 2023, handlers will have 

the maximum amount of time to begin 

the contracting process with producers. 

Thus, it is unnecessary and contrary to 

the public interest to delay the effective 

date of the final rule. 

Additionally, this rule makes two 

administrative changes to the provisions 

(7 CFR 1145.1(c) and 7 CFR 1145.2 (a)) 

to include the California Federal milk 

marketing order in the list of eligible 

orders where use of a forward contract 

is applicable. The California Federal 

milk marketing order was established on 

November 1, 2018, and this is the first 

rulemaking directly relevant to the 

DFPP since that time. 

List of Subjects in 7 CFR Part 1145 

Government contracts, Milk 

marketing orders, Price support 

programs, Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, the Agricultural Marketing 

Service amends 7 CFR part 1145 as 

follows: 

PART 1145—DAIRY FORWARD 

PRICING PROGRAM 

■ 1. The authority citation for 7 CFR 

part 1145 continues to read as follows: 

Authority: 7 U.S.C. 8772. 

■ 2. Amend § 1145.1 by revising 

paragraph (c) to read as follows: 

§ 1145.1 Definitions. 

* * * * * 

(c) Forward contract means an 

agreement covering the terms and 

conditions for the sale of Class II, III or 

IV milk from a producer defined in 7 

CFR 1001.12, 1005.12, 1006.12, 1007.12, 

1030.12, 1032.12, 1033.12, 1051.12, 

1124.12, 1126.12, 1131.12 or a 

cooperative association of producers 

defined in 7 CFR 1000.18, and a handler 

defined in 7 CFR 1000.9. 

* * * * * 

■ 3. Amend § 1145.2 by revising 

paragraphs (a) and (b) to read as follows: 

§ 1145.2 Program. 

(a) Any handler defined in 7 CFR 

1000.9 may enter into forward contracts 

with producers or cooperatives 


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Federal Register / Vol. 89, No. 35 / Wednesday, February 21, 2024 / Rules and Regulations 12951 

associations of producers for the 

handler’s eligible volume of milk. Milk 

under forward contract in compliance 

with the provisions of this part will be 

exempt from the minimum payment 

provisions that would apply to such 

milk pursuant to 7 CFR 1001.73, 

1005.73, 1006.73, 1007.73, 1030.73, 

1032.73, 1033.73, 1051.73, 1124.73, 

1126.73 and 1131.73 for the period of 

time covered by the contract. 

(b) No forward price contract may be 

entered into under the program after 

September 30, 2024, and no forward 

contract entered into under the program 

may extend beyond September 30, 2027. 

* * * * * 

Erin Morris, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2024–03407 Filed 2–20–24; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2023–2147; Project 

Identifier MCAI–2023–00663–E; Amendment 

39–22670; AD 2024–03–01] 

RIN 2120–AA64 

Airworthiness Directives; Pratt & 

Whitney Canada Corp. Engines 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: The FAA is adopting a new 

airworthiness directive (AD) for all Pratt 

& Whitney Canada Corp. (P&WC) Model 

PW307A and PW307D engines. This AD 

is prompted by a root cause analysis of 

an event involving an uncontained 

failure of a high-pressure turbine (HPT) 

1st-stage disk that resulted in highenergy debris penetrating the engine 

cowling and an aborted takeoff. This AD 

requires removing from service and 

replacing certain HPT disks and also 

prohibits installing certain HPT disks on 

any engine, as specified in a Transport 

Canada AD, which is incorporated by 

reference. The FAA is issuing this AD 

to address the unsafe condition on these 

products. 

DATES: This AD is effective March 27, 

2024. 

The Director of the Federal Register 

approved the incorporation by reference 

of a certain publication listed in this AD 

as of March 27, 2024. 

ADDRESSES: 

AD Docket: You may examine the AD 

docket at regulations.gov under Docket 

No. FAA–2023–2147; or in person at 

Docket Operations between 9 a.m. and 

5 p.m., Monday through Friday, except 

Federal holidays. The AD docket 

contains this final rule, the mandatory 

continuing airworthiness information 

(MCAI), any comments received, and 

other information. The address for 

Docket Operations is U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE, 

Washington, DC 20590. 

Material Incorporated by Reference: 

• For service information identified 

in this final rule, contact Transport 

Canada, Transport Canada National 

Aircraft Certification, 159 Cleopatra 

Drive, Nepean, Ontario, K1A 0N5, 

Canada; phone: (888) 663–3639; email: 

TC.AirworthinessDirectives-Consignesde

navigabilite.TC@tc.gc.ca; website: 

tc.canada.ca/en/aviation. 

• You may view this service 

information at the FAA, Airworthiness 

Products Section, Operational Safety 

Branch, 1200 District Avenue, 

Burlington, MA 01803. For information 

on the availability of this material at the 

FAA, call (817) 222–5110. It is also 

available at regulations.gov under 

Docket No. FAA–2023–2147. 

FOR FURTHER INFORMATION CONTACT: 

Barbara Caufield, Aviation Safety 

Engineer, FAA, 1600 Stewart Avenue, 

Suite 410, Westbury, NY 11590; phone: 

(781) 238–7146; email: barbara.

caufield@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

The FAA issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 by adding an AD that would 

apply to all P&WC Model PW307A and 

PW307D engines. The NPRM published 

in the Federal Register on November 9, 

2023 (88 FR 77236). The NPRM was 

prompted by AD CF–2023–30, dated 

May 8, 2023 (Transport Canada AD CF– 

2023–30) (also referred to as the MCAI), 

issued by Transport Canada, which is 

the aviation authority for Canada. The 

MCAI states that on March 18, 2020, an 

Airbus Model A321–231 airplane, 

powered by International Aero Engines 

AG (IAE) Model V2533–A5 engines, 

experienced an uncontained HPT 1ststage disk failure that resulted in an 

aborted takeoff and high-energy debris 

penetrating the engine cowling. 

In response to the March 2020 

uncontained HPT 1st-stage disk failure, 

the FAA issued a series of ADs, 

including Emergency AD 2020–07–51, 

Amendment 39–21110 (85 FR 20402, 

April 13, 2020) (AD 2020–07–51). Since 

the FAA issued AD 2020–07–51, IAE 

determined that the failure of the 

V2533–A5 engine was due to an 

undetected subsurface material defect in 

the HPT 1st-stage disk that may affect 

the life of the part. In coordination with 

IAE, P&WC performed a records review 

and analysis of PW307A and PW307D 

engine parts made of similar material 

and identified additional affected HPT 

1st and 2nd-stage disks, installed on 

PW307A and PW307D engines. These 

additional HPT disks may have a 

material defect that could reduce the life 

of the part and must be removed from 

service. 

In the NPRM, the FAA proposed to 

require replacing certain HPT disks and 

prohibiting the installation of certain 

HPT disks on any engine, as specified 

in the MCAI. The FAA is issuing this 

AD to address the unsafe condition on 

these products. 

You may examine the MCAI in the 

AD docket at regulations.gov under 

Docket No. FAA–2023–2147. 

Discussion of Final Airworthiness 

Directive 

Comments 

The FAA received no comments on 

the NPRM or on the determination of 

the costs. 

Conclusion 

These products have been approved 

by the aviation authority of another 

country and are approved for operation 

in the United States. Pursuant to the 

FAA’s bilateral agreement with this 

State of Design Authority, it has notified 

the FAA of the unsafe condition 

described in the MCAI referenced 

above. The FAA reviewed the relevant 

data and determined that air safety 

requires adopting this AD as proposed. 

Accordingly, the FAA is issuing this AD 

to address the unsafe condition on these 

products. Except for minor editorial 

changes, this AD is adopted as proposed 

in the NPRM. 

Related Service Information Under 1 

CFR Part 51 

The FAA reviewed Transport Canada 

AD CF–2023–30, which identifies the 

affected HPT disks and specifies 

procedures for replacement. This 

service information is reasonably 

available because the interested parties 

have access to it through their normal 

course of business or by the means 

identified in ADDRESSES. 

Costs of Compliance 

The FAA estimates that this AD 

affects 63 engines installed on airplanes 

of U.S. registry. 

The FAA estimates the following 

costs to comply with this AD: 


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